Integrated Auditing, Information Transparency And Share Price Synchronization

At the beginning of the twenty-first century,Enron,WorldCom and other financial scandals have been exposed,making investors doubtful about the reliability of listed companies financial information.A series of counterfeiting events show that there are many problems in the internal control and information disclosure system of listed companies,which need to be solved by means of relevant system.In 2002,the United States issued Sarbanes-Oxley Act mandatory requiring listed companies to issue an internal control audit report,followed by Sarbanes-Oxley Act,the government issued the introduction of operational guidance documents.The concept of integrated audit was put forward for the first time in 2010.In 2012 government required China's listed companies to disclose the audit report of internal control in batchesmandatorily,the relevant provisions of the internal control audit was extended to all the board listed companiesuntil 2014.During this period,the China Association promoted integrated audit positively,and issued introduction of how to integrate the auditing of financial statements and internal control,so as to promote the rapid development of integrated audit in China.With the rapid expansion of integrated audit in China,more and more listed companies voluntarily carry out integrated audit,then how effective is the implementation of integrated audit? Based on the relevant theories and literatures at home and abroad,this paper examines the effect of the integrated audit from the perspective of the quality of information disclosure and the securities market,and explores the mechanism of the impact of the integrated audit on the securities market.This paper chooses the listed companies in Shanghai and Shenzhen from 2012 to 2016 as the sample,empirical test the relationship among integration audit,information transparency and stock price synchronization,and the transmission mechanism of the three to draw the following conclusions:(1)integrated audit is positively related to information transparency;(2)there is a significant positive correlation between the transparency of the information and the stock price;(3)the integrated audit has a significant positive correlation with the stock price synchronization;(4)the integration of the audit affects the stock price synchronization through the intermediary role of information transparency.Finally,this paper offered proposals from the perspective of the listed companies,accounting firms and regulatory authorities according to the above empirical results.The main body of the article is divided into six chapters,the chapters are described as follows:Chapter One Introduction.Describe the research background,research significance,research framework and research methods,and possible innovations in the study.Chapter 2,Literature Review.The literature review is divided into two parts.The first part is the literature review of the integration variable,the transparency of the information and the stock price.The second part is the review of the literature review.Chapter 3,theoretical basis.The theoretical basis mainly discusses the theory of support from the four aspects of principal-agent theory,system coordination theory,effective market theory and behavioral finance theory.Chapter 4 studies hypothesis and research ideas.Based on the literature review and theoretical basis,this paper puts forward four hypotheses about the integration audit,information transparency and stock price synchronization: H1: Significant positive correlation between integrated audit and information transparency;H2: Information transparency is positively correlated with stock price synchronization;H3: Consolidated audits are significantly positively correlated with stock price synergies;H4: Consolidated audits affect the synchronicity of share price through the mediating role of information transparency.And according to the hypothesis design of the corresponding model,the definition of dependent variables,independent variables and control variables,and finally to the data source and screening criteria to elaborate.Chapter 5,Empirical Test and Result Analysis.The statistical analysis of the data obtained by statistical software,including descriptive statistics,correlation analysis,regression analysis and information transparency in the integration of audit and stock price synchronization between the intermediary effect analysis,and for the hypothesis and empirical test results Analysis.Chapter 6,conclusions and recommendations.Summarize the findings and analyze them in detail.And from the listed companies,accounting firms and regulatory agencies from the perspective of the relevant recommendations.Finally,the limitations of this study are discussed and the future is discussed.